Technical Indicator Shows That Bitcoin: USD/BTC (BTC=X) Slight Upwards Momentum is Slowing
Although Bitcoin has established some levels of stability around its current price of $3,900 for the past several weeks and volatility has been steadily decreasing, as a recent Bloomberg report points out, Bitcoin’s Moving Average Convergence Divergence indicator has been declining since mid-February, which may signal that the cryptocurrency will soon incur significant selling pressure.
This indicator, which is most commonly referred to as MACD, offers traders and analysts insight into the momentum and trends of a specific asset, and is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. This indicator’s primary use is for gauging the strength or weakness of specific price trends.
As noted in the report, the MACD is currently showing that since mid-February, “long-term buying demand for Bitcoin are deteriorating, potentially showing that selling pressures could intensify.”
Overall, the bias in prices is: Sideways.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 3,858.43.
The projected upper bound is: 4,137.24.
The projected lower bound is: 3,572.93.
The projected closing price is: 3,855.08.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 40.0346. This is not an overbought or oversold reading. The last signal was a buy 13 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 51.39. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 18 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 6. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 1.280 at 3,853.200. Volume was 80% below average (consolidating) and Bollinger Bands were 50% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,900.36 3,696.81 4,882.39
Volatility: 43 48 64
Volume: 53,685 66,429 74,751
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 21.1% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 31 periods.